Frequently Asked Questions About Act^® Education Loans

Whose credit history is checked for loan approval, the co-signer's or the borrower's?
Both credit histories are checked.

What if I (the student-borrower) have a minimal credit history or no credit at all?
With minimal or no credit history, you will most likely require a co-signer to gain approval for a loan.

If I obtained a loan last year, do I have to reapply again this year?
Yes. You must reapply each academic year, but the loan can span 12 months of consecutive attendance.

When is the best time to apply for a loan?
You should apply for a loan as soon as you have received your acceptance letter from the school you plan to attend.

Is the information I gave on my online application protected?
We employ a multi-layered approach to ensuring the security of your personal information. Although these security measures are in place, if you would rather not handle financial transactions online, you can submit a paper version of the private student loan application form or call to apply over the phone.

How old do I have to be to apply or be eligible for a loan?
To be eligible for a private student loan you must be at least 18 years of age (19 in Nebraska and Alabama, 21 in Puerto Rico & Mississippi.) Mississippi residents under the age of 21 may borrow with written consent from a parent or guardian.

Is it possible to borrow funds for an entire year rather than one semester at a time? If so, how are the funds disbursed?
Yes, funds can be borrowed for up to 12 months of attendance. The disbursement is made by check and is sent to the loan carrier (the applicant with the stronger credit profile). The check will be made payable to the borrower (and co-payable to the co-signer, if applicable). It is disbursed no sooner than 21 days from the enrollment period start date.

As an applicant, do I need to have a Social Security number to apply for a loan?
The borrower and any co-signer are required to have a valid Social Security number.

Can I apply for a loan if I am a resident alien?
Yes, certain non-citizens are eligible to apply, generally those who hold a valid Proof of Residency (I-151 or I-551) card.

Do I need to be accepted to a school before I can get a loan?
You must be enrolled at an eligible institution to be approved for and receive a loan. Enrollment is verified after you submit an application, as part of the loan approval process.

How long does it take to get the loan check after I am approved?
This depends on how quickly the borrower and cosigner sign and return their Loan Documents and any other requested information and is based on the start of the enrollment period. The disbursement is made by check made payable to the borrower (and co-payable to the cosigner, if applicable) and can be disbursed within 48 hours of final approval. However, the check will not be disbursed sooner than 21 days from the enrollment period start date.

If an applicant receives grants or scholarships, does this affect the amount that can be borrowed through the Lender?
No. The amount that each borrower can borrow is based in part on the maximum Cost of Attendance as reported by your school to the Department of Education for the previous year.

If the borrower has other loans, does this affect the amount that can be borrowed through the Lender?
The amount that each borrower can borrow through us is based in part on the maximum Cost of Attendance as reported by your school to the Department of Education for the previous year. A borrower can have several Direct Student Loans up to the calculated Total Cost of Attendance.

Is there any other paperwork I need to complete after my loan is approved?
After your loan approval, you will need to sign, date and return the Promissory Note, provide verification of enrollment, and remit any other information that may be requested including but not limited to documentation to verify your identity and/or documentation to verify your income.

If I am conditionally approved, will I automatically be approved for a loan?
Not necessarily, however, most applicants who are conditionally approved will be approved for a loan provided the student's enrollment is verified for at least a half-time basis and all neccessary documents are returned. If your application is not approved, you will receive a letter via your preferred choice of communication (mail or email) explaining why. At that time you may supply additional information and reapply.